A BILL TO BE ENTITLED
AN ACT TO prohibit the possession or operation of VIDEO GAMING MACHINES except by a federally recognized indian tribe as AUTHORIZED by the indian gaming regulatory act and a valid tribal‑state compact.
Whereas, the State of North Carolina desires to clearly set forth its policy against commercial forms of gaming; and
Whereas, the State of North Carolina desires to recognize the unique relationship between it and the federally recognized Indian tribe within the State; and
Whereas, the State of North Carolina desires to make it clear that it does not consider the activities of the Eastern Band of Cherokee Indians conducted pursuant to the Compact between it and the Eastern Band of Cherokee Indians to be commercial gaming because the Federal Indian Gaming Regulatory Act restricts the use of proceeds from gaming operations conducted by federally recognized Indian tribes to governmental services and activities that further the self‑determination of the tribe; and
Whereas, the State of North Carolina desires to reaffirm that all activities conducted pursuant to such Compact or any amendment thereto are not commercial gaming and that same are lawful and not against the public policy of the State of North Carolina; and 
Whereas, the State of North Carolina recognizes the tribe's substantial capital investment in reliance on the Compact, the payments made by the tribe pursuant to the Compact, and the creation of jobs and other positive impacts the tribe's activities have brought to the entire economy of Western North Carolina; and
Whereas, the State, through this legislation, intends to make it clear that the State will honor its commitments under the Compact and amendments, to further express its legislative intent to fully recognize the rights of the tribe in its special sovereign governmental authority to conduct gaming on tribal lands, and to express the intent of the State to recognize as lawful, on tribal lands, all gaming activities conducted by the tribe pursuant to the approved Tribal‑State Compact as the same may from time to time be amended by the tribe and the State; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 14‑306.1 is repealed.
SECTION 2.  Part 1 of Article 37 of Chapter 14 of the General Statutes is amended by adding a new section to read:
"§ 14‑306.1A.  Types of machines and devices prohibited by law; penalties.
(a)	Ban on Machines. – It shall be unlawful for any person to operate, allow to be operated, place into operation, or keep in that person's possession for the purpose of operation any video gaming machine as defined in subsection (b) of this section, except for the exemption for a federally recognized Indian tribe under subsection (e) of this section for whom it shall be lawful to operate and possess machines as listed in subsection (b) of this section if conducted in accordance with an approved Class III Tribal‑State Compact applicable to that tribe, as provided in G.S. 147‑12(14) and G.S. 71A‑8.
(b)	Definitions. – As used in this section, a video gaming machine means a slot machine as defined in G.S. 14‑306(a) and other forms of electrical, mechanical, or computer games such as, by way of illustration:
(1)	A video poker game or any other kind of video playing card game.
(2)	A video bingo game.
(3)	A video craps game.
(4)	A video keno game.
(5)	A video lotto game.
(6)	Eight liner.
(7)	Pot‑of‑gold.
(8)	A video game based on or involving the random or chance matching of different pictures, words, numbers, or symbols not dependent on the skill or dexterity of the player.
For the purpose of this section, a video gaming machine is a video machine which requires deposit of any coin or token, or use of any credit card, debit card, or any other method that requires payment to activate play of any of the games listed in this subsection. The enumeration of games in the list in this subsection does not authorize the possession or operation of such game if it is otherwise prohibited by law.
For the purpose of this section, a video gaming machine includes those that are within the scope of the exclusion provided in G.S. 14‑306(b)(2) unless conducted in accordance with an approved Class III Tribal‑State Compact applicable to that tribe as provided in G.S. 147‑12(14) and G.S. 71A‑8. For the purpose of this section, a video gaming machine does not include those that are within the scope of the exclusion provided in G.S. 14‑306(b)(1).
(c)	Exemption for Certain Machines. – This section shall not apply to assemblers, repairers, manufacturers, and transporters of video gaming machines who assemble, repair, manufacture, and transport them for sale in another state as long as the machines, while located in this State, cannot be used to play the prohibited games and does not apply to those who assemble, repair, manufacture, and sell such machines for use only by a federally recognized Indian tribe if such machines may be lawfully used on Indian land under the Indian Gaming Regulatory Act.
(d)	Ban on Warehousing. – It is unlawful to warehouse any video gaming machine except in conjunction with the permitted assembly, repair, manufacture, and transportation of such machines under subsection (c) of this section.
(e)	Exemption for Activities Under IGRA. – Notwithstanding any other prohibitions in State law, the form of Class III gaming otherwise prohibited by subsections (a) through (d) of this section may be legally conducted on Indian lands which are held in trust by the United States Government for and on behalf of federally recognized Indian tribes if conducted in accordance with an approved Class III Tribal‑State Gaming Compact applicable to that tribe as provided in G.S. 147‑12(14) and G.S. 71A‑8."
SECTION 3.  G.S. 14‑306.2 reads as rewritten:
"§ 14‑306.2.  Violation of G.S. 14‑306.1A a violation of the ABC laws.
A violation of G.S. 14‑306.1A is a violation of the gambling statutes for the purposes of G.S. 18B‑1005(a)(3)."
SECTION 4.  G.S. 147‑12(14) reads as rewritten:
"(14)	Notwithstanding subsections (a) through (d) of G.S. 14‑306.1A, to negotiate and enter into Class III Tribal‑State gaming compacts, and amendments thereto, on behalf of the State, consistent with State law (G.S. 14‑306.1A(e) and G.S. 71A‑8) and the Indian Gaming Regulatory Act, Public Law 100‑497, as necessary to allow a federally recognized Indian tribe to operate gaming activities, including those games allowed pursuant to G.S. 14‑306.1A(e), in this State as permitted under federal law."
SECTION 5.  G.S. 71A‑8 reads as rewritten:
"§ 71A‑8.  Authorization for federally recognized Indian tribes.
In recognition of the governmental relationship between the State, federally recognized Indian tribes and the United States, a federally recognized Indian tribe may conduct games consistent with the Indian Gaming Regulatory Act, Public Law 100‑497, that are in accordance with a valid Tribal‑State compact executed by the Governor pursuant to G.S. 147‑12(14) and approved by the U.S. Department of Interior under the Indian Gaming Regulatory Act, and such games, including those permitted under G.S. 14‑306.1A(e), shall be lawful and not against the public policy of the State  if conducted by a federally recognized Indian tribe on federal Indian Trust Lands within the State in accordance with a Tribal‑State Gaming Compact applicable to that tribe as provided in G.S. 147‑12(14) and G.S. 71A‑8."
SECTION 6. G.S. 14‑298 reads as rewritten:
"§ 14‑298.  Seizure of unlawful gaming items.
(a)	Any law enforcement officer, including an agent of the Alcohol Law Enforcement Division of the Department of Crime Control and Public Safety, may seize  any gaming table prohibited to be used by G.S. 14‑289 through G.S. 14‑300, any illegal punchboard or illegal slot machine, or any video game machine prohibited to be used by G.S. 14‑306 or G.S.  14‑306.1A, that is in the possession or use of any person within the limits of their jurisdiction when probable cause exists as to the unlawful possession or use.
(b)	Any law enforcement agency in possession of an item seized pursuant to subsection (a) of this section shall retain the item pending a disposition order from a district or superior court judge.
(c)	At the conclusion of any criminal proceeding regarding an item seized, upon application by the law enforcement agency, district attorney, or owner of the seized item, and after notice and opportunity to be heard by all parties, if the court finds that either of the following occurred or existed at the time the item was seized, the court shall enter an order releasing the item to the law enforcement agency to be destroyed or used for training purposes:
(1)	The item was unlawfully possessed.
(2)	The item was being unlawfully used with the knowledge of the owner of the item. If the court does not find that either condition occurred or existed at the time the item was seized, the item shall be ordered released to its owner upon satisfactory proof of ownership.
(d)	This section does not prohibit any activities which are legally conducted by a federally recognized Indian tribe pursuant to G.S. 14‑306.1A(e), 147‑12(14), and 71A‑8."
SECTION 7.  Effective with respect to offenses committed on or after December 1, 2005, G.S. 14‑309(b) is repealed.
SECTION 8.  G.S. 105‑256(d)(1) is repealed, but that repeal does not affect reports for activities prior to December 1, 2005.
SECTION 9. This act becomes effective December 1, 2005, and applies to offenses committed on or after that date but also applies to compacts and amendments thereto executed before that date.  If a court of competent jurisdiction in this State issues a stay to prohibit possession or operation of video gaming machines by a federally recognized Indian tribe, as authorized by a valid Tribal‑State Compact, because that activity is not allowed on non‑Indian lands pursuant to this act, this act is suspended and shall not have the force of law until such time as the stay is dissolved or a final order is entered.  If a court of competent jurisdiction in this State issues a final order that prohibits the possession or operation of video gaming machines by a federally recognized Indian tribe, as authorized by a valid Tribal‑State Compact, because that activity is not allowed on non‑Indian lands, this act is void.